Kitex Garments Q1 FY27 Results (NSE: KITEX)
Signal: Slipped to loss
The read
The Q1FY27 recovery remains operationally weak: consolidated revenue fell 19.46% YoY, gross margin compressed 2948bps as raw-material intensity rose to 66.10%, EBITDA margin fell 1095bps to 6.43%, and the group remained loss-making for the third consecutive quarter; standalone profitability masks subsidiary drag and elevated depreciation and finance costs.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹158.43 Cr | -19.46% | -4.66% |
| EBIT | ₹-7.39 Cr | -123.83% | |
| Net profit | ₹-17.12 Cr | -188.70% | |
| EPS | ₹-0.44 | -142.31% | |
| EBIT margin | 6.43% |
P&L walk
Consolidated revenue declined to ₹15,842.50 lakh, -19.46% YoY and -4.66% QoQ; gross margin fell to 33.90% from 63.38% as raw materials rose to 66.10% of revenue from 36.62%, while EBITDA margin fell to 6.43% from 17.38% and depreciation of ₹1,757.93 lakh drove EBIT to a ₹739.06 lakh loss.
Segments
The group operates in a single reportable Textile - Infant/Kids Apparel Manufacturing segment; the material divergence is basis-driven, with standalone PAT of ₹1,160.00 lakh versus a consolidated loss of ₹1,712.05 lakh because subsidiaries contributed ₹812.55 lakh of non-controlling-interest loss and other group losses.
Key positives
- Standalone revenue recovered 9.46% QoQ to ₹12,101.08 lakh and standalone PAT increased 20.56% QoQ to ₹1,160.00 lakh.
- Consolidated EBITDA margin improved 543bps QoQ from 1.00% to 6.43%, although it remained 1095bps below the year-ago level.
- Employee expense declined 12.32% YoY on a consolidated basis to ₹3,347.26 lakh, partly offsetting the revenue contraction.
Key concerns
- Consolidated revenue declined 19.46% YoY to ₹15,842.50 lakh, continuing the sharp slowdown from the ₹19,669.19 lakh year-ago quarter.
- Gross margin compressed 2948bps YoY as raw materials rose to 66.10% of revenue from 36.62%; the filing does not disclose the cause or evidence of pass-through.
- Consolidated net loss widened to ₹1,712.05 lakh from a ₹1,930.34 lakh profit YoY, while depreciation rose 454.27% to ₹1,757.93 lakh and finance costs rose 284.61% to ₹1,360.60 lakh.
- Standalone PAT of ₹1,160.00 lakh materially overstated group earnings because subsidiaries and non-controlling interests produced a consolidated loss of ₹1,712.05 lakh.
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